Just now:
This means Apple might have been working on a 7-inch tablet since last year. In my opinion, the chances that we'll see an iPad mini this fall are getting bigger and bigger.
2 PM: Forstall is shown a 2011 email from Eddy Cue, in which Cue forwarded an article that a journalist wrote about dumping the iPad after using a Galaxy Tab. Cue writes "Having used a Samsung Galaxy [Tab], i tend to agree with many of the comments below... I believe there will be a 7-inch market and we should do one. I expressed this to Steve several times since Thanksgiving and he seemed very receptive the last time."
This means Apple might have been working on a 7-inch tablet since last year. In my opinion, the chances that we'll see an iPad mini this fall are getting bigger and bigger.